NIVEDAN BHARADWAJ vs. ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-19, DELHI & ORS.

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W.P.(C)/17932/2024HC DelhiDLHC01098759202424 December 2024Bench: HON'BLE MR. JUSTICE TUSHAR RAO GEDELA,HON'BLE THE ACTING CHIEF JUSTICE2 pages
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What did the High Court hold?

The Delhi High Court allowed the petition. The court accepted the Revenue's concession that the impugned notice dated 15.09.2023, issued under Section 153C of the Income Tax Act, 1961, for assessment year 2016-17, was indeed barred by limitation. The Revenue's counsel acknowledged the correctness of the petitioner's submissions regarding the limitation period. Consequently, the High Court set aside the impugned notice. The ratio decidendi is that if a notice issued under Section 153C is found to be beyond the statutory limitation period, it is liable to be quashed. The petition was allowed in terms of setting aside the notice, and pending applications were disposed of.

What were the facts?

The petitioner, Nivedan Bharadwaj, challenged a notice dated 15.09.2023 issued under Section 153C of the Income Tax Act, 1961, for assessment year 2016-17. The petitioner also challenged a notice under Section 142(1) of the Act. The primary ground for the challenge was that the impugned notice was barred by limitation. The satisfaction note of the Assessing Officer for the searched person was recorded on 23.08.2023, which the petitioner stated was relevant to assessment year 2024-25. The petitioner provided a tabular statement indicating the six-year block period for assessments under Section 153C read with Section 153A of the Act.

What were the issues?

1. Whether the notice dated 15.09.2023 under Section 153C of the Income Tax Act, 1961, for assessment year 2016-17 is barred by limitation? Assessee's Contention: The impugned notice is beyond the period of limitation. The petitioner relied on a tabular statement showing the six-year block period for assessments under Section 153C read with Section 153A of the Act. Revenue's Contention: The learned counsel for the Revenue fairly stated that the contentions advanced by the petitioner are correct and the impugned notice is beyond the period of limitation. The Revenue concurred with the petitioner's submissions regarding the limitation period.

Which sections of the Income-tax Act were involved?

Section 153C,Section 142(1),Section 153A

AI-generated summary — verify with the full judgment below

$~19. * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 17932/2024, CM APPL. 76267/2024 CM APPL. 76268/2024 NIVEDAN BHARADWAJ .....Petitioner Through: Mr. Nitin Gulati, Ms. Reena Gandhi, Advs. versus ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-19, DELHI & ORS. .....Respondent Through: Mr. Debesh Panda, SSC with Ms. Zehra Khan, JSC and Mr. Vikramaditya, JSC. CORAM: HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MR. JUSTICE TUSHAR RAO GEDELA O R D E R % 24.12.2024 1. The petitioner has filed the present petition impugning the notice dated 15.09.2023 (hereafter the impugned notice) under Section 153C of the Income Tax Act, 1961 (hereafter the Act) as well as the notice under Section 142(1) of the Act, inter alia, on the ground that the impugned notice is barred by limitation. The impugned notice was issued on 15.09.2023 in respect of assessment year 2016-17. 2. The learned counsel appearing for the Revenue fairly states that the contentions advanced by the petitioner are correct and the impugned notice is beyond the period of limitation. 3. The satisfaction note of the Assessing Officer for searched person was recorded on 23.08.2023, which is relevant to the assessment year 2024-25. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:33:51

The petitioner has set out a tabular statement in his objections to the impugned notice indicating the block of six years in respect of which assessments could be re-opened under Section 153C of the Act. The said tabular statement is set out below: “ Computation of the six-year block period as provided under Section 153C read with Section 153A of the Act No. of years AY 2023-24 1 AY 2022-23 2 AY 2021-22 3 AY 2020-21 4 AY 2019-20 5 AY 2018-19 6 ” 4. The learned counsel for the Revenue concurs with the above submissions. Accordingly, the impugned notice is set aside. 5. The petition is allowed in the aforesaid terms. Pending applications also stand disposed of. VIBHU BAKHRU, ACJ TUSHAR RAO GEDELA, J DECEMBER 24, 2024 N.Khanna This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 20:33:51

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